Éamonn Meehan, Trócaire

Jerry MacEvilly, Trócaire

“A tiny tax from those who helped create the economic crisis would mean more investment in public services.”

David Joyce, ICTU

Positive Benefits

A significant revenue source for the Irish government

If Ireland adopt the FTT, it will raise an estimated €320 to €360 million in revenue. This amounts to an extra €1 billion every three years. This revenue raised will be fully available for the Irish Government to invest.

We are suggesting it is invested:

In much needed public services that were cut back after the crisis (50%).

To fight poverty in developing countries (25%).

Tackling Climate Change (25%).

Create jobs

If the revenue from the FTT were reinvested back into the economy - employment would rise. If 50% of the estimated €340 - €360 million was returned to the Irish economy the following number of jobs can be created – either through spending increases or tax cuts:

Capital Investment Increase: 3,150 jobs

Social Transfers Increase: 1,500 jobs

Income Tax Reduction: 1,500 jobs

Public Services Increase: 3,100 jobs

These estimates come from the Nevin Economic Research Institute and include not only direct job creation but employment increases from the increased demand (e.g. consumer spending). The introduction of the FTT is highly likely to raise the overall employment in the economy.

Retain jobs in the IFSC

The FTT is constructed so that it is very difficult to avoid. It does not matter where a company is based in the EU. The only way that a financial institution could avoid paying the tax would be to stop all business with countries that have an FTT. This would be self-defeating for almost all financial institutions. This means that if Ireland were to adopt the FTT, there would be no incentive for financial institutions to move to London.

Reduce harmful economic activity

In recent years there has been an explosion in high frequency trading - transactions that happen every few seconds. There has also been a huge increase in derivatives, making the volume of financial transactions increase to more than 70 times the size of the world economy. Many serious commentators believe this volume is dangerously large and de-stabilising. Many of the most speculative, risky and socially useless transactions are based on very small profit margins, meaning that even at a very low rate such as 0.05%, an FTT would shrink the size of the market by reducing the profitability of the most risky transactions. Many economists support the FTT for this reason.

It’s a good idea

But don’t just take our word for it.
Influential leaders from around the world support a Robin Hood Tax

Angela Merkel

Chancellor of Germany

We all agree that a financial transaction tax would be the right signal to show that we have understood that financial markets have to contribute their share to the recovery of economies.

Today we need to take a second step and introduce a tax on financial transactions – that has already been agreed to by several European states – so that the capital movements that profit from globalization can contribute to international development and the fight against pandemics.

François Hollande

President of France

Dr Micheál Collins

Nevin Economic Research Institute (NERI)

Ireland has much to gain from an EU-wide FTT and should adopt a more assertive position in campaigning for it. After four decades, its time has surely come.

It's not only poetic justice -- it's good economics and has great political appeal.

Lawrence Mishel

President of the Economic Policy Institute

George Soros

Soros Fund Management and Open Society Institute

The globalization of financial markets has given financial capital an unfair advantage over other sources of taxation. A tax on financial transactions would redress the balance.

I urge G20 leaders … to introduce a tax on financial transactions to help low-income countries hit by the economic crisis and to protect poor people from climate change.